Assignment
1)The following is a standard unmodified audit report for a fictitious publically traded company named Baby Margate Homewares.
REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM
To the Chief Executive Officer of Baby Margate Homewares:
We have audited the consolidated balance sheets of Baby Margate Homewares as of December 31, 2015 and 2014, and the related consolidated statements of operations, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2015. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company and the results of its operations and its cash flows for each of the previous three years in conformity with U.S. generally accepted accounting principles. We believe that our audits provide a reasonable basis for our opinion.
We also have audited, in accordance with the auditing standards generally accepted in the United States of America, the effectiveness of Baby Margate Homewares' internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 20, 2016, expressed an unqualified opinion that Baby Margate Homewares maintained, in all material respects, effective internal control over financial reporting.
Bill Laimbeer - Partner of Barkely Laimbeer Parish LLC
Detroit MI
February 15, 2016
Question: There are numerous errors within the above audit report. Identify and indicate how you would correct up to eight of the errors within this audit report.